I experienced this after I disabled WSL2 and moved to WSL1 by exposing deamon without TLS. Because using WSL2 caused my computer to hang, having only 4 GB RAM. However, even after this change, yesterday Docker was hanging almost one hour, while extracting and downloading images. Some pipe problem was reported.
Turning off DockerDesktopVM indeed removed lock, but same happened again. Previously, I installed unlock software and I was able to run Docker to the point where not enough memory exception was thrown. Now I will try just to unlock file and start Docker without turning off DockerDesktopVM, but I don’t expect it to work. Afterwards, will try to reinstall Docker.
BTW; It would be nice to have more options during the installation, like choosing the drive where images will be stored and whether we want daemon exposed without TLS so that we don’t need to restart Docker after installation.